Senator Gerzofksy: Creating Economic Opportunity

Last year, I sponsored legislation to provide a sales tax exemption for non-profit performing arts organizations. The bill, An Act to Provide a Sales Tax Exemption to Incorporated Nonprofit Performing Arts Organizations, was overwhelming supported and passed in the Senate and House of Representatives, but recently vetoed by the Governor.

Following the Governor’s veto message, the Senate voted to override the Governor’s veto. The bill received tri-partisan support in the vote (19-14), but it unfortunately did not receive the 2/3rds support necessary to overturn the veto. As a result, the bill has been defeated.

This legislation would have created fairness for non-profit performing arts organizations to fall in line with other cultural non-profit organizations that hold tax exempt status, such as libraries, museums, historical societies, literary groups, schools, school booster organizations, educational television and radio, and even summer camps.

Strong cultural organizations, like good libraries and medical facilities, are attractive to businesses looking to relocate. This was the real selling point for me. I saw this legislation as stabilizing jobs and fostering economic opportunities.

It is important to consider that cultural attractions are a valuable part of our tourism industry. Travelers visiting Maine for cultural attractions shop at our stores, stay at our lodges, eat at our restaurants, and spend money in our communities. This is all revenue to the state.

I want to thank the Executive Director of the Bowdoin International Music Festival, Peter Simmons, for initiating this legislation. He understands, firsthand, the importance of Maine’s cultural economy.

Locally, his organization combined with the Maine State Music Theater have an economic impact in excess of $8 million, much of which comes in the form of thousands of attendees and visitors shopping and eating out in Brunswick, Bath, Freeport, and Portland region. This organization – and others like it around the state – provide stable jobs, year-round and seasonal, and draw business into communities throughout the state.

Both organizations attract significant amounts of funding from out-of-state to support their programs. Those funds support jobs here in Maine – more than 12 full time year round positions and dozens of temporary summer positions.

Cultural attractions can be found all around the state, including: the Acadian Festival (Madawaska), American Folk Festival (Bangor), Bay Chamber Concerts (Rockport), Theater at Monmouth, Ogunquit Playhouse, and many others. These organizations provide jobs, year-round and seasonal, and draw business into communities.

We need these organizations to grow their business, provide jobs, and support job growth in the tourism and retail sectors. By easing the sales tax costs to these businesses, they can grow faster and contribute more to the economy.

I have heard from some who question the need for this bill. My entire time in the Legislature has been focused on redeveloping the Brunswick Naval Air Station and bringing economic development to the region. This bill was about stabilizing and creating opportunities for more Maine jobs. I will always fight for quality jobs for Maine people.